Photo Credit: PNGX
PNGX Markets Limited, Papua New Guinea's national stock exchange, and the Securities Commission of Papua New Guinea (SCPNG) have signed a Memorandum of Understanding on the preservation of an orderly market for listed securities.
The Securities Commission may make public remarks regarding a listed business from time to time in the course of its duties and responsibilities that a reasonable person would anticipate to have a substantial impact on the price or value of the listed company's securities.
Making such remarks during trading hours (10 a.m. to 4 p.m.) might jeopardize an orderly and fair market in such assets.
The MoU intends to foster collaboration between the Securities Commission and the PNGX in order to support the effective performance of their respective duties and responsibilities, as well as the preservation of orderly and fair markets in Papua New Guinea.
According to the MoU, the Securities Commission will avoid making public statements about a listed company that a reasonable person would expect to have a material effect on the price or value of a listed company's securities during trading hours, to the extent that it is reasonably practicable to do so.
If it is not possible to avoid making such public remarks during market hours:
- Prior to issuing the relevant public statement, the SCPNG will inform PNGX;
- PNGX will impose a trading stop on the relevant listed company's securities; and
- SCPNG will provide PNGX with a copy of the relevant public statement for distribution to the market as soon as feasible.
“It is fundamental that regulatory governance systems are established to ensure a fair and orderly market,” said Robert Salmon-Minak, acting executive chairman of the Securities Commission.
“This MoU recognises and respects the differing but complementary roles of the Securities Commission and PNGX in achieving that outcome.
“The capital market regulator in any country plays a critical function in the economy of that country,” said PNGX chairman, David Lawrence. We are pleased to be working with the Securities Commission to put in place processes that promote confidence in the PNG capital market.”
Reference: Post-Courier (27 August 2021). “Securities Commission, PNGX Sign Agreement”.
